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Mortgage article 11:Mortgage Lending Reaches Record Level: Page 2

"We are disappointed that the Chancellor has not addressed our concerns about the impact of stamp duty on first-time buyers. As we reported recently, with the average house price around 100,000 - and 78,000 for first-time buyers - 60% of first-time buyers now pay stamp duty, compared to just 23% in 1997. By this time next year, if we have average house price inflation of 10% in 2002, as now seems likely, up to a million more homes would be caught and two in three first-time buyers would be paying duty. This trend creates a barrier into home-ownership that needs to be reversed in the next Budget.

"We welcome therefore the Treasury's announcement that they recognise stamp duty is outdated and will modernise it in next year's Finance Bill. The case for major reform is overwhelming, as we have argued, and we will play a full part in the forthcoming consultation." End of article - Back to mortgage articles list



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